I worked briefly at a video store part time around 2000. There wasn't that brisk of a business from the little private room, at least not during the times when I worked (which included week days). But by this time home internet was broadly available, perhaps only dial up for many people in my area but it was still available. I wonder if the new competition for this subsidy business wasn't a bigger part of the fall of video stores than it seemed to be.
Although, most of the other staff were quite "judgey" so its possible that I just worked at a store that wasn't popular with those customers.